Post by
BlueJay2020 on Jul 17, 2021 9:12pm
Opco Debt Levels
Someone posted recently that they were concerned over the high levels of debt that the operating company is carrying.
On May 9, 2021 the bank was owed $24.3M.
On August 31, 2020, the bank was owed $36.7M
On February 9, 2020, the bank was owed $29,3M
On August 25, 2019, the bank was owed $25.2M
On February 10, 2019, the bank was owed $29.0M
Given the trauma that the company has been through over the last 18 months, they do not appear to be in demonstrably woirse shape financially than when the stock was trading at $15.
The debt is a third lower than it was almost 12 months ago, and by the end of the year could be lower still. As of now they are only using 50% of their availability facilities, which are locked in until July next year. The finances are sufficiently healthy for the bank to allow a catch-up of circa $5M of deferred royalties and interest.
What am I missing here?
Comment by
BlueJay2020 on Jul 19, 2021 7:10pm
Yep, you're right. For some reason they decided to bury the new debt in other long-term liabilities, even though they include some of it in the bank credit facilities in the discussion. Still, I'd argue that in a period when revenue was down something like 70 per cent, to be about $7M higher is not the end of the world.